Cargo Partner Group AS (Norway) - Jan 2008

unquote
01 January 2008

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CapMan Buyout VIII has acquired Swedish Globex AB, Norwegian Cargo Partners and STS Group, in a move to build a new Nordic logistics group for an undisclosed deal value. The newco will be Cargo Partner Group AS. CapMan has acquired approximately 65%, while management will hold 20% of the shares and the previous management will keep a 15% stake in the new group. CapMan bought out the three businesses in a proprietary deal process after looking to consolidate smaller logistics companies for some time. The group’s new CEO, Konrad Kuhlman, worked together with CapMan to find suitable targets and provided important insights on the industry. With this deal CapMan aims to create a platform of mid-sized companies which together can compete more efficiently than as stand-alone businesses in the Nordic market. The group will provide a service focused on personal customer service and flexibility to grow organically and further add-ons will be made to increase market share. An IPO is anticipated as the preferred exit route in a few years.

Debt structure

SE Bank supplied a senior debt package and CapMan Mezzanine IV supplied mezzanine financing to support the deal.

Company

The three businesses have aggregated turnover of some €150m, in a market that is valued at €16bn. The Nordic logistics market is expected to grow by 4-7% annually in the next few years, mainly due to outsourcing, and important changes in production and storage structures. The new group will have approximately 330 employees and be headquartered in Oslo.

Gothenburg-based Globex AB employs 67 people and reports turnover of SEK 440 per year. The business also has six other subsidiaries in Sweden and Finland.

Lillestrøm-based STS AS recorded turnover of NOK 330m last year and employs 120 people in Norway, Denmark and the UK.

Oslo-headquartered Cargo Partner employs around 100 people and had turnover of NOK 500m last year. The business has eight offices in Norway and Denmark.

People

The new integrated group will be headed by Konrad Kuhlman, the former managing director of Nor-Cargo. Investment manager Espen Stenumgård worked on the deal and, together with investment analyst Henrik Tholander, will represent CapMan on the board of directors. Globex was previously owned by Per-Gunnar Friberg. Ivar Alsaker was the majority owner of Cargo Partners, while Stein Nappen, Erik Olsen and Egil Berg were the owners of STS AS leading up to the buyout.

Advisers

Equity - De4, Aud Austbø Pettersen (Other Due Diligence)Equity - Gaute Wigenstad Krekling, (Financial Due Diligence)Equity - Selmer, Are Herrem (Legal)

Sourced from: Nordic unquote" 71 (Feb 2008)